Tag: fraudlent charge

Many consumers find that businesses have charged more than promised. Calls may result in evasive or unresponsive answers. Our office handled such claims on class and individual basis, seeking to obtain reimbursement or damages and prevent fraud.
One consumer publication summarizes the law:

“Unscrupulous businesses can increase their income by concealing unauthorized charges amid legitimate charges in their bills. Many consumers will trust the company to bill properly, and pay the bill without questioning its amount. Billing for charges is
{sometimes} an implicit representation that the creditor is lawfully entitled to the charges. Including incorrect charges in a bill is a UDAP violation. Billing charges to a credit card without the consumer’s consent is unfair and deceptive. Mislabeling a fee on a bill in order to disguise its nature or suggest that it is required by the government can be deceptive. ”

Demanding payment for a phony service may be an unfair act and violation of state deceptive practice or consumer fraud laws. a UDAP violation. A number of courts have recognized that purporting to charge a consumer for a tax that the seller does not in fact pass on to the taxing authority is deceptive, but some courts have held that under state law the consumer’s only claim is against the taxing authority. Stating an earlier due date than the actual deadline, in order to obtain premature payments and earn interest on them, may be deceptive. But a California court held that it was not a UDAP violation for a hospital to bill a patient without disclosing that it provided a discount for prompt payment.https://library.nclc.org 5.7.7 Deceptive Billing Practices.